Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

Third Revised Sheet No. 575 Third Revised Sheet No. 575

Superseding: Second Revised Sheet No. 575

 

GENERAL TERMS AND CONDITIONS

(continued)

 

25.IMBALANCE RESOLUTION PROCEDURES (continued)

 

25.9 Imbalance Netting

For purposes of determining the imbalance quantity that will be subject to resolution

pursuant to Section 25.10, all imbalances within an Operational Impact Area due Cash-

out Party under all of Cash-out Party's contracts for a Month and all imbalances in

that same Operational Impact Area due Algonquin under all of Cash-out Party's contracts

for that same Month shall be summed together to yield a single imbalance for that

Operational Impact Area for the Month, unless otherwise requested in writing by Cash-

out Party. Any imbalance not resolved after Sections 25.7 and 25.8 above have been

utilized will be subject to resolution in accordance with Section 25.10 below.

 

25.10 Cash-out Provision

 

Prior to or with the monthly transportation invoice, Algonquin will render each Cash-

out Party a statement detailing the unresolved imbalances. In the second Month after

the imbalances occurred, a bill for the amount due Algonquin or a credit of the amount

due Cash-out Party, as determined below, will be rendered with the monthly

transportation invoice pursuant to Section 18.1 of these General Terms and Conditions.

 

(a) Determination of Index Price. The Index Price for purposes of resolving

imbalances shall be the average of the index cash out prices for the relevant

Month established for purposes of resolving imbalances by the upstream pipelines

that delivered gas to Algonquin for Customer's account at Customer's Points of

Receipt, such average being weighted on the basis of Customer's receipts. In the

event that none of the upstream facilities operators that delivered gas for

Customer's account has established a cash out price for purposes of resolving

imbalances, the cash out index price established by Texas Eastern Transmission,

LP for deliveries at Lambertville, New Jersey during the Month in question shall

be utilized as the Index Price. The upstream index price utilized in each case

shall be inclusive of any zone, location or transportation charges assessed by

the upstream pipeline in the course of cashing out imbalances on such upstream

facilities that are attributable to points of interconnection with Algonquin's

facilities.

 

(b) Imbalance Due Algonquin. In the event of an imbalance caused when Cash-out

Party's allocated deliveries as determined in accordance with Section 25.2 exceed

Cash-out Party's allocated receipts as determined in accordance with Section

25.3, less an allowance for fuel determined in accordance with Section 32 of the

General Terms and Conditions, Algonquin shall charge Cash-out Party for such

excess delivery plus an allowance for fuel calculated by multiplying such excess

delivery by the applicable fuel percentage established pursuant to Section 32 of

the General Terms and Conditions. Such charge shall be based on the appropriate

index price for the Month multiplied by one or more of the following factors:

 

Imbalance Level Factor

 

Less than or equal to 5% 1.00

Greater than 5% but less

than or equal to 10% 1.10

Greater than 10% but less

than or equal to 15% 1.20

Greater than 15% but less

than or equal to 20% 1.30

Greater than 20% but less

than or equal to 25% 1.40

Greater than 25% 1.50